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Peter Costello has warned Treasurer Josh Frydenberg that record federal government spending cannot continue and there needs to be structural reform to both grow the economy and repair the budget.
The former treasurer’s advice at the traditional post-budget Higgins 200 breakfast in Melbourne on Friday follows the forecasting of a $106.6 billion deficit in 2021-22 after a record $161 billion shortfall this financial year.
Josh Frydenberg (left) has enlisted Peter Costello, who ran surpluses for a decade, to take part in several promotional photo shoots at Melbourne coffee shops since becoming Treasurer.
Credit:Tash Sorensen
The 2021-22 budget outcome is in stark contrast to the federal government’s pre-coronavirus view that deficits were unsustainable and the budget would be “back in the black” by now. It has instead unveiled a $74.6 billion spending plan aimed at getting the nation’s economy surging post-pandemic, on top of the huge outlays it made during